1st-Time Miner Gets Creative As Equity Stays Scarce

Law360, New York (September 11, 2012, 8:41 PM EDT) -- Stornoway Diamond Corp. is getting creative to push its $800 million Canadian diamond mine toward financial close, releasing a financing plan last week designed to overcome the equity drought facing small miners and squeeze as much up-front cash as possible from future production.

Equity is scarce for all miners these days, but especially for smaller ones. Valuations — the ratio of stock price to total assets — are low, which means companies can't issue new shares without seriously diluting existing ones, a move that risks angering...
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